MasMovil set for €5bn takeover

Published: 2 June 2020 - 2:25 p.m.

Spanish telecoms giant, MasMovil, is set to be the subject of a €5 billion takeover, according to reports in the press.

The UK’s Financial Times reported that three equity firms will pay €22.50 per share to take control of the telecoms operator.

Providence Equity Partners, Cinven and KKR Group would be involved in the deal that values the company, including its debt, at close to €5 billion.

MasMovil’s share price has seen a meteoric rise over the past four years, and the price of €22.50 per share represents a 20 per cent premium on the company’s current stock value.

In its home market of Spain, MasMovil enjoys a 14 per cent share of the country’s mobile subscriber market and has 11 per cent of the country’s broadband subscriptions.

The deal is the latest example of consolidation in Europe’s telecommunications sector, following the European Commission’s decision to annul its 2016 decision to block the proposed merger of Three UK and O2. The move removers the precedent of a four operator minimum throughout European markets and could lead to further consolidation down the line.

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